Scheme chargeable payment meaning

In this issue: Business structures Taxes management and litigation Employment taxes Companies and corporation tax VAT Environment Individuals and income tax Dates for your diary Trackers Daily and weekly news alerts New and updated content Latest Q&A Useful information Business structures Court of Appeal upholds UT and FTT decisions that incentivisation awards to partners are subject to income tax (HMRC v BlueCrest Capital Management LP and others and Andrew Dodd and others v HMRC) As noted below, in HMRC v BlueCrest Capital Management LP; and Andrew Dodd v HMRC [2023] EWCA Civ 1481, the Court of Appeal examined the tax position of awards granted to partners under an incentivisation scheme. It affirmed the rulings of the First-tier Tax Tribunal (FTT) and the Upper Tribunal (UT) that, although the awards were not profit share allocations, they still represented income and were chargeable to income tax as miscellaneous income under section 687...

In this issue: Local government reorganisation Public procurement Planning Social housing Adult social care Children’s social care Education Governance Local government finance Healthcare Highways Environmental law and climate change Daily and weekly news alerts New and updated content Local government reorganisation MHCLG publishes decisions on local government reorganisation The Ministry of Housing, Communities and Local Government (MHCLG) has issued an update letter confirming that no determination has yet been reached on proposals for local government reorganisation in East Sussex and Brighton and Hove, with further assessment ongoing before arrangements are finalised. MHCLG has also released consultation findings and letters confirming implementation in devolution priority areas to create: five unitary councils in Essex, Southend-on-Sea and Thurrock, five unitary councils (option 1A) in Hampshire, Isle of Wight, Portsmouth and Southampton, and three unitary councils in each of Norfolk and Suffolk. Council...

M R Currell Ltd v HMRC [2024] UKUT 404 (TCC) The EBT loan within the scheme fell due for repayment on the fifth anniversary and was secured over shares in the taxpayer company, which the shareholder-director had acquired using the loan monies as an element of the planning. The parties were in dispute about whether the FTT had determined that the payment of the contribution to the EBT, or the advance made by the EBT, amounted to the shareholder-director’s earnings. When scrutinising the FTT’s judgment, the UT ultimately held that the tribunal had concluded that it was the payment of the contribution into the EBT that was chargeable to tax as earnings...

What is a long-term incentive plan? As set out in the Practice Note: What is a long-term incentive plan?, the awards most frequently delivered under a long-term incentive plan (LTIP) typically comprise: conditional share awards (often referred to in the US as restricted stock units (RSUs)) nil-cost options share appreciation rights (SARs) forfeitable shares, sometimes described as restricted stock A brief summary outline of the likely capital gains tax (CGT) treatment on disposals of shares obtained on the vesting of each LTIP award type is set out below. For more detail and background on the different award types available under an LTIP, see Practice Note: Structure of a long-term incentive plan—Types of awards for further guidance. Please note that this Practice Note proceeds on the basis that, at acquisition of the shares or otherwise on vesting of the LTIP awards, the employee has been fully subject to income tax and, where the shares are readily convertible, national insurance...

The types of income chargeable to tax as 'savings and investment income' include: interest, being income within ITTOIA 2005, ss 369–381 purchased life annuities, being income within ITTOIA 2005, ss 422–426 deeply discounted securities (DDS), being income within ITTOIA 2005, ss 427–460 income arising under the accrued income scheme chargeable event gains on life policies for which an individual (or the personal representatives of a deceased individual) is liable to income tax This Practice Note primarily examines how interest, the leading form of savings income, is taxed. It also addresses income falling under the accrued income scheme. Interest can be viewed as consideration for one person’s use (or retention) of money that belongs to another. Consequently, for a payment to qualify as interest there must be an identifiable principal on which the return is computed, and both the principal and the interest must be owed to the same person. The most familiar examples are amounts credited by banks...

The income tax charges associated with employment-related securities and securities options Income tax liabilities tied to employment-related securities and securities options usually arise on the acquisition of securities, or because employment income is treated as arising on a later chargeable event, rather than through a cash receipt. Consequently, the employer often cannot withhold pay as you earn (PAYE) in the ordinary manner. Specific provisions require an employer to operate PAYE in respect of these notional payments. Where that PAYE amount is not made good to the employer, an extra, punitive, income tax charge falls on the employee (or director), and Class 1 NICs for the employer and the employee also arise, to the extent of the unpaid PAYE amount...